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Mother-Daughter Duo Sentenced in $800K Wyoming Medicaid Fraud Scheme

Mother-Daughter Duo Sentenced in $800K Wyoming Medicaid Fraud Scheme
AP Photo/Jose Luis Magana

A mother-daughter duo has been sentenced for conspiracy to commit healthcare fraud

Tera Marie Campbell, 47, of Maitland, Florida, and her daughter, Tayler Ann Krauss, 27, of McDavid, Florida, were ordered to pay $735,717.63 in restitution to Wyoming Medicaid for losses related to the conspiracy. 

Campbell was sentenced to 36 months’ imprisonment followed by three years of supervised release, while Krauss received two years of home confinement. 

The judge also ordered Campbell to pay $135,890.91 to the military's Tricare program, specifying that Krauss is co-responsible for up to $71,509.44 of the Tricare total. Separately, Campbell was sentenced in January for related frauds in North Dakota, where she received a three-year suspended sentence, three years of supervised release, and was ordered to repay an additional $225,000 to North Dakota’s Medicaid program. 

Court documents say that Campbell owned The Olive Branch, LLC, a behavioral health clinic that offered services for children with autism in Cheyenne, Wyoming, and Minot, North Dakota. 

The charges accused Campbell of using the clinic to orchestrate a multi-year Medicaid fraud scheme that included fraudulent Medicaid claims for uncertified care, claims upcoded to a higher-paying service, and bills for services that did not occur. 

This included dates when the clinic was closed and while Campbell was out of the country on vacation. Investigators alleged Krauss worked as a medical biller and assisted with service documentation for the clinic from December 2020 through October 2022. The investigation found the clinic relied extensively on untrained employees, falsified certification and supervision records, and submitted fraudulent claims despite knowing the services did not meet Medicaid requirements. 

The pair was indicted on May 21, 2025, and pleaded guilty on April 9, 2026. U.S. District Court Judge Kelly H. Rankin sentenced Krauss on June 29 and Campbell on June 30 in Cheyenne.

This case is the result of a joint investigation between the Wyoming Attorney General's Office's Medicaid Fraud Control Unit, the Federal Bureau of Investigation, and the U.S. Department of Defense, Defense Criminal Investigative Service. Special Assistant U.S. Attorney Travis Kirchefer prosecuted the case.

Medicaid fraud steals taxpayer dollars from programs that millions of Americans depend on and undermines care for vulnerable patients,” said U.S. Attorney Darin Smith. “I am committed to holding accountable those who exploit these programs for personal gain. Working alongside our federal and state law enforcement partners, we will continue to aggressively investigate and prosecute healthcare fraud to protect public resources and preserve the integrity of our nation's healthcare system.”

“This prosecution represents a successful partnership between state and federal law enforcement agencies to combat fraud,” said Wyoming Attorney General Keith Kautz as he praised the work of his office's Medicaid Fraud Control Unit.

The Wyoming Attorney General’s Medicaid Fraud Control Unit investigates and prosecutes fraud and related crimes committed by Wyoming Medicaid providers. The unit also investigates and prosecutes instances of abuse, neglect, or financial exploitation by Medicaid providers and in Medicaid-funded settings.

Suspected fraud against Medicaid or Medicare can be reported to the U.S. Department of Health and Human Services’ Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) and the agency’s website https://oig.hhs.gov/fraud/report-fraud/. Wyoming residents can call the Wyoming Medicaid Fraud Control Unit toll free at 1-800-378-0345, or visit their website at http://ag.wyo.gov/medicaid-fraud-control-unit

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